USD/JPY and Japan are losing momentum

FXstreet.com (Moscow) – USD/JPY is still around 103.00 hardly reacting to Eco Watchers Survey data.

Stable DM recovery is questioned

The series of worse than expected data only support the fears the economy is losing momentum, and the current stimulus is not enough to keep Japan going. This understanding coupled with risk factor may help the pair move lower. The pair lacks confidence in geopolitical future of the world, what is the main barrier on the way higher. The permanent involvement of the USA in any kind of conflict makes investors reduce their long positions on the pair. The sanctions proposed by the EU, and the USA will prevent the developed countries from stable recovery, thus fueling the demand on the safe-heavens – the Yen and the Swissy. As such, we expect the pair to stay under pressure short term with initial target at 102.84 support level.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 103.31, with support below 102.84, 102.37 and 101.90, with resistance above at 103.79, 104.26, and 104.73. Hourly Moving Averages are mostly bullish, with the 200SMA at 102.24 and the daily 20EMA at 102.42. Hourly RSI is neutral at 48.